FSSA Ends Contract with MDwise Affecting Thousands
The Family and Social Services Administration (FSSA) has announced a major change for Hoosiers enrolled in Medicaid through MDwise. The agency confirmed it will end its contract with MDwise on January 1, which means about 300,000 members must move to a new managed care plan before the start of the year.
Who Is Affected?
This decision impacts people enrolled in the Healthy Indiana Plan (HIP) and Hoosier Healthwise. These programs serve adults, pregnant women, and children across Indiana.
Members who currently use MDwise must choose one of three remaining managed care entities:
- Anthem
- CareSource
- Managed Health Services (MHS)
FSSA spokesperson Marcus Barlow said the agency will send letters to every affected member. If someone does not select a new plan, FSSA will auto-enroll them into a comparable option to prevent gaps in coverage.
Why FSSA Made the Decision
According to FSSA, the move followed a review of quality ratings and cost performance. The agency said MDwise ranked lowest in quality and highest in cost when compared to its competitors. Because of that, FSSA decided to shift members to other plans that show stronger performance.
MDwise Pushes Back
MDwise strongly disputes the state’s findings. Company leaders say they have served Indiana families for more than 30 years and have not seen data that supports FSSA’s decision.
They also argue that the January 1 deadline does not give members enough time to transition—especially those whose doctors may not participate in other plans. MDwise noted that many providers will need time to complete credentialing, which could lead to care disruptions.
What Happens Next
FSSA maintains that it does not expect provider access issues, and the agency believes many doctors will choose to join the remaining plans. The change also comes as the Braun administration looks for ways to lower rising Medicaid costs statewide.
Meanwhile, MDwise has filed legal challenges and asked federal officials to review the decision and extend the transition period for members and employees.
For now, Hoosiers enrolled in MDwise should monitor their mail, look for official communication from FSSA, and prepare to choose a new plan before December 31 to avoid interruptions in coverage.
